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The Housing Industry Association (HIA) has responded to the recently released package of housing industry reforms from the Victorian Coalition government, claiming that there is more room for improvement.
Minister of Finance Robert Clark, Minister of Planning Matthew Guy and Minister of Consumer Affairs Heidi Victoria announced the 'Victorian Domestic Building Consumer Protection Reform Strategy' earlier this week (May 27), which aims to give better protection to consumers who are involved with the building of new homes or renovations to existing homes.
Key elements of the reforms include more accessible insurance cover, improved builder registration standards and discipline for non-performing builders, a freer flow of information to consumers and a 'one stop shop' for building practitioner regulation and consumer protection.
These proposed changes could affect the potential cost for those looking to build real estate in Melbourne.
Mr Clark said that the current system was not working as well as it should be, for neither consumer nor builder.
"It can be far too difficult for consumers to get justice when a builder does the wrong thing," he said in a statement released May 27.
"Builders who give the industry a bad name are too often not being held to account, while honest, capable and hard-working builders can be tied up with insurance paperwork and lengthy disputes with unreasonable clients."
However, HIA regional executive director for Victoria, Gil King, said that the sheer size of the strategy "asks more questions than it answers".
He said the HIA wants the Victorian government to conduct a Regulatory Impact Statement (RIS) in order to ensure that the claimed benefit from the strategy is worthwhile.
The increased costs to consumers and builders across the country, many of whom are "small businesses undertaking home building and renovations across the state".
A RIS is a document which provides evidence of the steps taken during the development of a proposal, which includes a rundown of all the costs involved and the forecast benefits of implementing the proposal into society.
"There are also a number of areas where we need to see much more detail to allow the industry to better understand what the government is trying to achieve, so that we can avoid any unintended consequences," he said in a statement released May 28.
However, he said it was important to retain public confidence in the home building sector.
"Unnecessarily sending a message to consumers that building a new home is a risky proposition is not the right response and will cost jobs in the sector," he said.
